Comparing Dr. Pepper Snapple And Coca-Cola

Gross profit margin measures sales available to cover operating expenses and still generate a profit. These percentages represent how much money the company earns for every dollar in the gross margin. In 2015 and 2016, Coca-Cola and Dr. Pepper Snapple had a very similar margin until Coca-Cola increased the margin in 2017. PepsiCo has fallen behind both of its competitors in the last 3 years and has been consistently around 55%. Coca-Cola has had a very stable gross profit margin which shows that the company has been successful in creating its products and services in comparison to PepsiCo and Dr. Pepper Snapple. I will be important for Coca-Cola to maintain this high gross profit margin in the upcoming years to stay ahead of the competition. …show more content…
In 2015, all three companies had a very similar growth rate. Coca-Cola’s EPS has dropped at a very high rate of the last three years. From 2015 to 2016, there was a -10.77% drop, and from 2016 to 2017, there was a massive -80.53% drop. Dr. Pepper Snapple has the largest EPS growth in 2017 that grew from 2016 by 29.32%. This substantial decrease for Coca-Cola can be explained by its backlash in India, the increased awareness of health risks attached to soda, and a declining growth rate in Latin America and Asia. Coca-Cola has the potential to increase their earnings per share in the following years due to their large market share and can dig themselves out of the hole by making the right decisions for the